Indian markets closed in the red on Thursday, weighed down by selling pressure across most sectors. The Sensex dropped 236 points (0.2%) to close at 81,289.96, while the Nifty fell 93 points (0.3%) to settle below 24,550. MidCap and SmallCap indices also felt the heat, declining by 0.5% and 1%, respectively.
Markets Slide; IT Stocks Buck the Trend
Sector-wise, FMCG and Media bore the brunt, with FMCG stocks sliding 1.09%, while Media lost 2%. In contrast, IT stocks managed to stay in the green, providing a sliver of hope in an otherwise downbeat market.
Among the top gainers were Bharti Airtel, Adani Ports, and Tech Mahindra. On the losing side, NTPC, Hindustan Unilever, and BPCL were hit hardest.
The broader market weakness reflected ongoing macroeconomic challenges, with rising raw material costs and weak consumer demand pressuring sectors like FMCG.
Weak FMCG Performance: Key Drivers
The FMCG sector faced significant headwinds:
- Weak Demand and Inflation: Urban demand remained muted as high inflation dented consumer spending.
- Disappointing Earnings Outlook: A lackluster Q3 outlook from major players, including Godrej Consumer Products, dampened sentiment.
- Rising Costs: Higher raw material prices, especially for commodities like palm oil, squeezed margins.
- Market Volatility: Expiry-related pressures in futures and options trading added to the negative sentiment.
As a result, major players like HUL, Britannia, and Colgate-Palmolive saw declines of over 1%, with the Nifty FMCG index dropping by 1.01%.
Corporate Highlights
- Reliance Industries: In a landmark deal, Rosneft will supply up to 500,000 barrels per day of crude oil to RIL.
- HDFC Bank: The bank received a warning from SEBI for non-compliance with capital and insider trading regulations.
- Zomato: Facing a GST demand of ₹803.4 crore, including interest and penalties, from the Thane tax department.
- Siemens: Appointed Harish Shekar as CFO for its energy business, effective January 2025.
- Axis AMC: Opened a new branch in GIFT City to expand its reach.
Global Markets: Mixed Trends
On Wall Street, the Dow Jones Industrial Average fell for the sixth consecutive day, shedding 99 points (0.2%) to close at 44,148.56. While Dow futures dipped slightly, S&P 500 and Nasdaq-100 futures posted modest gains of 0.2% and 0.5%, respectively.
Broadcom was a standout performer, surging 14% on strong AI-driven revenue, while RH jumped 17% on robust growth forecasts. Meanwhile, the release of November’s Producer Price Index, which showed a 0.4% rise, raised concerns about inflation pressures.
In Asia, Chinese and Hong Kong stocks rallied on ongoing stimulus measures, bucking the trend of mixed global markets ahead of the U.S. Federal Reserve’s meeting next week.
Looking Ahead
As markets react to macroeconomic developments and sector-specific challenges, today’s trading session could see heightened volatility.
We expect the market to correct further and end the week with nifty at around 24,300 mark.
Stocks to watch
Keep an eye on key stocks like Reliance, HDFC Bank, and Zomato, which are likely to drive market sentiment. Stay tuned for more updates as we track these stories closely.
